Bitcoin News

Bitcoin Price Craters Almost 10%; Is Gold To Blame? ETH Shines

​The first quarter of 2017 has been a revelation, if you’re a digital currency investor. Whether you like a particular currency’s fundamentals or not, now is the time people are buying in and making a small fortune on most options on the market. Thursday, however, was a return of the bears to Bitcoin, as BTC dropped nearly 10% before rebounding 3%. Here’s why.

USD and The Fed were major factors

In the Bitcoin community, it has been quite a while, since early-2013, since the U.S. dollar has been the major player in exchange currency for Bitcoin. Chinese Yuan and now the Japanese Yen, have been the major forces investing in Bitcoin, but the USD is back on the scene. As the Coinhills chart below shows, at least for Thursday, this 24-hour currency exchange chart for Bitcoin shows there was major Western money moving on Bitcoin. The USD took up better than a third of the exchange market, apparently mostly out of it, as Bitcoin fell like a rock. Why?

With the announcement by Federal Reserve figurehead Janet Yellen of an interest rate increase on Wednesday, it seems that Americans with money in Bitcoin dumped it for Gold, as Gold took off in lockstep with BTC’s fall from over $1250 early on Thursday, according to GoldPrice.org. Here is Bitcoin’s activity versus the Gold market on Thursday, versus the Bitcoin price drop yesterday on BitcoinAverage.com:

Bitcoin did rebound about three percent in the evening, so Bitcoin is worth more than the $1140 it bottomed out at. One digital currency that is not bottoming out is Ethereum, which is crushing the market, a la Dash, over the last few week. Ethereum started Thursday trading at less than $35 USD and as of this writing, it had passed $45 USD for a better than 30% daily gain.

This can be attributed, at least in part, to the Enterprise Ethereum Alliance deal that we reported on last month. Some of the world’s top corporations will collaborate with Ethereum’s brand of blockchain technology, including Fortune 500 companies like Intel, Microsoft, J.P. Morgan and ING. Ethereum started the year trading at less than $8 USD.

Altcoin Dash has retreated since it’s $101 USD all-time high on Wednesday, stepping back about 10% overall to around $90. It has still had an unprecedented level of gains in Q1, beginning the year at just over $11 USD. As Bitcoin fork fear speculation has swelled over the last month, so has Dash’s market value.

Author : Evander Smart

Evander Smart worked for many years as a Wall Street banker, and has learned how the economy is self-destructing from the inside. His travels, experience and research have led him to Bitcoin as the best way forward for the common man. He looks to spread the word on how Bitcoin can help anyone break the shackles of economic slavery being created by global establishment forces. Evander gets you thinking about what money really is, and how it will work for you going forward. The world of finance is getting ready for incredible changes, and he is getting ready for what's coming next. Are you? Learn more about "The Future of Money" @ Bitcoin Video University